 |
CADA'S SB-091 TO BE HEARD IN SENATE BUSINESS, LABOR & TECHNOLOGY COMMITTEE CADA's lobby team is full speed ahead at the Capitol! After 2 years of discussion, a member-wide survey and countless meetings of your Legislative Policy Committee, a seven point legislative bill has been drafted and is now referred to as SB-091. The "SB" stands for "Senate Bill." In the Senate, SB-091 is sponsored by Sen. Chris Romer (D-Denver), son of former Governor Roy Romer, Senate President Peter Groff (D-Denver), and Senate Minority Leader Josh Penry (R-Fruita). In the House of Representatives, SB-091 is sponsred by Rep. Joe Rice (D-Littleton), Chairman of the House Business Affairs & Labor Committee, Rep. Don Marostica (R-Loveland) and Rep. Amy Stephens (R-Monument). Tim Jackson, and I, traveled extensively througout the state in December to meet with legislators prior to the start of the Legislative Session on January 7, 2009. Although we did not have a bill yet during those meetings, we did have a list of the 7 top issues that our 270 dealers wanted addressed legislatively. This extra effort on the part of your lobby team has certainly placed us ahead of the curve in terms of educating legislators about our issues as we headed into the 2009 Session. Since the start of the Legislative Session just over a month ago, your lobby team, along with several dealers, have been at the Capitol every day lobbying legislators on SB-091 and educating them about the issues that matter most to you. Most legislators were unaware of the frustrations you experience when it comes to your sales and service agreements with automakers. SB-091 proposes to accomplish seven goals: (1) Equalize the time under which dealers can submit a warranty or sales incentive claim and the time a manufacturer can audit that claim. CADA has proposed 12 months, each way, after which either party's compliance is voluntary. (2) Prohibit manufacturers from requiring exclusive facilities. This change would allow dealers to dual brands without having to first receive the consent of the manufacturer. (3) General prohibition on mandatory facility upgrades. If a dealer wishes to participate in an incentive program for upgrading an existing facility, those incentives must be applied equally to all dealers in Colorado. (4) Any price incentives offered in any other state in the country must also be offered in Colorado. (5) Upon termination of a brand, a manufactrer must pay a dealer the value of their rent for 12 months, and must pay the goodwill/blue sky value of the dealership on the day the announcement is made to terminate the brand. These determinations are made by a CPA. (6) When a dealer wishes to sell or relocate a dealership, the manufactrer shall have statutory deadlines under which they must make a decision. If they fail to respond, their silence is considered approval. (7) Statutorily prohibit manufacturers from selling used vehicles and grandfather-in the one manufacturer (Navistar, Inc.) that has a small store in Commerce City. While we don't agree with Navistar operating as a dealer, this matter has been litigated and the courts have ruled that they can continue to sell, so it would not be politically possible to revoke their dealer license legislatively. Our bill was heard on Monday, February 9th in the Senate Business, Labor and Technology Committee. This committee consists of seven members, which include: Sen. Jennifer Veiga (D-Denver), Sen. Rollie Heath (D-Boulder), Sen. Lois Tochtrop (D-Thornton), Sen. Joyce Foster (D-Denver), Sen. Shawn Mitchell (R-Broomfield), Sen. Ted Harvey (R-Highlands Ranch), Sen. Mark Scheffel (R-Parker). After extensive testimony by local dealers, there were several amendments to the bill which the parties have negotiated and the bill will be voted upon today, Wednesday, February 11 at 1:30pm in the same committee. Further updates will be forthcoming. CLICK HERE to view the talking points on the bill. We will keep you updated as SB-091 makes its way through the legislative process!
|
